Mastercard, Visa, and Revolut failed to secure a victory in their legal challenge against the UK’s payments regulator over plans to impose a cap on cross-border card fees.
The case was heard before London’s High Court on January 15, 2025. The Payments System Regulator (PSR) had earlier indicated its intention to introduce such a fee cap in response to concerns about high fees charged by European consumers purchasing from UK businesses.
Background and Further Details
The three companies argued that the PSR lacked the necessary competencies to enforce price caps. However, Judge John Cavanagh dismissed their claims, affirming that the regulator indeed possesses the authority to implement the proposed fee caps.
A Reuters report stated that Mastercard chose not to comment on the ruling, while Visa and Revolut did not immediately respond to inquiries regarding their stance. Prior to this decision, Visa had expressed doubts about the feasibility of such price controls, asserting that they could potentially diminish the benefits consumers and businesses derive from card payments.
David Geale, Managing Director of the PSR, welcomed the court’s verdict, reiterating his body’s commitment to ensuring fair card payment costs for UK businesses and consumers. This decision paves the way for the PSR to continue its efforts in setting an appropriate level for cross-border interchange fees.
The exact nature of the price caps and their implementation timeline remain undetermined as of now.
